Part of the WTO`s non-discrimination mandate is the status of the Most Favoured Nation (MFN). The status of the most favoured nation requires that a WTO member apply the same conditions for trade with all other WTO members. In other words, if a country gives a special favour to another country (including a non-WTO member), any other WTO member must receive the same treatment. You probably saw a version of the most favoured child status when an adult told you that if you were taking chewing gum or candy to school, you should bring enough for everyone. In other words, you couldn`t just give chewing gum or candy to your best friends, and if you didn`t have enough for everyone in the class, no one would get it. This is indeed how the nation`s most privileged status works. The video below provides a good overview of the IMF and its role in promoting global trade. The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement regulating international trade. According to its preamble, its objective is to “substantially reduce tariffs and other trade barriers and eliminate preferences on a mutually beneficial basis.” The GATT was negotiated at the UN Conference on Trade and Employment and was the result of the failure of negotiations on the creation of the International Trade Organization (ITO). The GATT was signed in 1947 and lasted until 1993, when it was replaced by the World Trade Organization (WTO) in 1995. The original GATT text (GATT 1947) is still in force under the WTO, subject to amendments to the GATT in 1994. The following video explains and compares the different types of trade agreements: the International Monetary Fund (IMF) is an international organization created on July 22, 1944 at the Bretton Woods Conference and launched on December 27, 1945, when 29 countries signed the IMF agreement. It originally had 45 members.
The IMF`s stated objective was to stabilize exchange rates and support the reconstruction of the global payment system after World War II. Through a quota system, countries introduce money into a pool from which countries with payment imbalances can temporarily borrow funds. Through these and other activities, such as monitoring the economies and policies of its members, the IMF is working to improve the economies of its member countries. The IMF sees itself as “an organization of 188 countries working to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and promote sustainable economic growth and reduce poverty.” A common market is the first step towards a single market and may, initially, be limited to a free trade area. APEC is examining the prospects and options for a free trade area in the Asia-Pacific region (FTAAP), which would include all APEC member countries. Since 2006, the APEC Business Advisory Council, which advocates the theory that a free trade area has the best chance of converging Member States and ensuring stable economic growth within the framework of free trade, has committed to creating a high-level task force to study and develop a free trade area plan.